You guys what's going on so um. I wanted to come on here and and remind you guys that tomorrow at 1pm i'm gonna host a workshop it gonna be a study group and the topic is on the algo scalping strategy. So many of you guys are aware of the fact that over the last um two days. I've been teaching this class for a warrior pro members.

It was a five chapter course. And so i started it on monday and just finished. It today so taught over the course of two days and the uh. The idea is to teach you guys.

The strategy that i'm using you know pretty much every day to scalp the algo spikes. And so these are the. Algo spikes that we. See in the morning.

Usually four am. Five am six. Am seven am. 7.

30. 8. 8. 30.

9. You see it during the morning. Show breaking news comes out i jump in ride that momentum going higher. And there's a strategy to it it's not uh obviously something that uh a beginner trader is going to be able to understand or probably trade.

This is a more advanced strategy. You have to be willing to be a bit more aggressive. But one of the things that i have found in this market. You know we're obviously in a bear market.

It's been six months of this bear market so far and for me. The algo spikes. Have been one of the more consistent strategies trading them. And so scalping and algo spike for me.

I would consider that to be algo scalping. So what you're looking for is a stock that's moving up quickly and has a news catalyst and you want to jump in and ride that wave. It's always easier to trade in the same direction as algorithmic support and in general the same direction that momentum is going trying to predict. Reversals is going to be a lot more difficult especially in a bear market.

So during the workshop tomorrow. It's going to be one o'clock. It's a study group and i'm going to walk you guys through my approach for finding stocks that i think are good candidates for an algo scalp. I'm going to walk you through the news feed that i use the scanners that i use and where i get in to find to try to get the best entry.

And then how i scale out today. We talked pretty extensively about order routing and this is order routing can get pretty complex obviously it could be very simple if you use robinhood or td ameritrade because you have very few options. But if you're using a more sophisticated broker. You have a lot of options to how you route your orders.

And so we talked about that quite a bit today because one of the things that you're able to do obviously is choose which exchange you're routing to and choose the order type and so i choose order types that allow me to get really quick fills and give me the opportunity. I think really to compete at a pretty high level when we're having these really quick moves. So you know you have a stock that goes up 30 40 in like a minute two minutes. These are moving so fast that you need to find your edge.

So i'm going to walk you through what i think is the edge for retail traders and we don't have a lot of edges in the market. You know we're a drop in the ocean. When it comes to trading in general obviously the big institutional traders. The market makers.

These are the ones that are making money every single day day in and day out basically no matter what and you know this is not the same market that we had a year ago or two years ago. You know during sort of the height of the the big covid um. You know surge that we that we had in the market. Obviously gamestop was you know just one of those stocks that went crazy.

But that was one of many we had an amazing 2020 and 2021. 2022 has been so far a bear. Market and trading during a bear market is not as easy. When you're trading.

The long side as trading in a bull market. So what i'm going to do is i'm going to walk you through the algo scalping strategy. And it's going to be fairly concise. The classes that i taught this week through five chapters.

I taught that over the course of about i guess. It was probably seven hours or so. So. That class is available for warrior pro members.

But for those of you guys that are on youtube that tune in every morning. I thought that you might find it helpful to better understand how i trade. Some of these really fast moving stocks. Because of course you're seeing them um.

You know every morning. Just about when i'm trading. So that's the game plan for tomorrow uh. I did put a link down in the description here you guys can check out if you've liked and you're welcome to register.

There'll be a limited number of people who are able to ask questions and we will do q a towards the end of the workshop. So i think it would be fun. I think you guys will get a lot out of it this is a strat you know sort of one of the things that i was asking myself. Which um.

You know i think about quite a bit is why is it you hear me say this all the time trading is risky. Most beginner traders lose money and you know i find myself. Wondering. Why is it that so.

Many beginner traders struggle. And why is it that so many of them go through this uh experience of death by a thousand cuts. You know it's not like one big blow up it's just sort of small loss after small loss after small loss that adds up and i think one of the reasons. Is that the market is designed to take your money away from you part of this is through the payment for order flow.

You know obviously those of you guys that trade at free brokers. You know that there's big market makers out there that pay millions and millions and millions of dollars uh hundreds of millions probably billions a dollar well. Actually it was 36. Billion dollars that they paid in 2021 for your order flow now they're paying 36.

Billion. Because they know they make even more money obviously if they broke even they're not they're not doing this to break even so they make enough money that 36. Billion dollars was worth it so you know to me. It's like every trade.

You take a little sliver. A little slice goes out to those big um. You know those big institutions. And it's not just it's it's certainly disproportionate for traders because we're trading.

So actively if you take you know a thousand trades a year or something like that a slice of every single one of those trades is getting siphoned out of your account and going right up to these big institutional uh traders these big market makers and so this is a market. That is really. It's designed to take money out of your pocket with every trade you take so when you come into the market. You have to come in with a strategy of how you're going to find profit how you're going to find opportunity and how you're going to come out on top and that means you've got to be super.

Disciplined you've got to trade less not more the more you trade the more the more money you're you're exposing to just give up and lose through this you know death by a thousand cuts or whatever. So you have to trade less you have to focus on really high quality opportunities where you've got peak volatility and so one of the things. I've found to be really consistent this year. Is by looking for places where i expect an algo spike.

Because if we're getting an algo spike. Then and the algo has my back on the trade. It feels like um basically these are these have been the easiest trade so far this year. And it's not to say that trading is easy.

But i think probably the most difficult trades are the ones. Where you're trading stocks that have that are very stacked on the bid. Very stacked on the offer you've got these market makers that are just like strangling. These stocks and they're just trading in really tight ranges.

Where you can't make any money they pop up. They do false breakouts. They flush. They do false breakout downs.

They come back up and they're trading in these very narrow ranges they get really like congested in there. And it's not until they break out of those ranges that you start getting good opportunities. So when they break out of those ranges. That's when they move fast.

And it feels like you know these are these stocks are just held back and then when they start to break out the algos or whatever. It is just kind of let it go you get these big moves so you get these clean moves. But they're very short lived and they're in between long periods of choppy consolidation. Today we ended up having some really good opportunities on pgy.

If you were watching that uh you know this morning. We had good opportunities this morning. We had good opportunities pre market into the open and you know the thing ended up going up like 100 today. That was one of the rare opportunities.

It was one of the probably best momentum stocks of the month. I would say at this point. And it's you know it's been a slow month. But that was a really good opportunity that was an example of a stock that i think the algo had your back and i think it was the right type of stock to be focusing on now you definitely had some algo scalp opportunities in there where you saw breakdowns and then really fast rips.

So first you had an algo flush like that panic cell where there's stop hunting you get that sweep down. It's just like sells down. Really fast really hard panic selling people get stopped out and then dip buyers come in and it rips. All the way back up to the high and then squeezes through new highs.

That's what happened at 19 on it today. And it was it was an impressive um first like topping tail rejection. Which looked like an obvious short and then a whip right back up. So the idea to me in trading.

Is your goal is to my goal at least is to try to make 15 20. Cents a day out of the market. Now you know if i can make more that's great. But realistically 20 cents a day 15 cents a day with 10 000 shares that's 1500 bucks 2 000.

That for me is great obviously my daily goal right now is 5 000. So i have to be a little bit more aggressive. I'd have to actually get a full 50 cents. And i got that on pgy today for sure.

But if you think about that basic goal of just capturing little slivers of profit just 15 cents a day 20 cents a day with a thousand shares right. Now. Here's the problem. A lot of beginner traders will say.

Oh i can only take a thousand. I can only take uh 100 100 shares. I can't buy a thousand shares. I can only buy a hundred and so you're in this perpetual state.

Where with a hundred shares in order to make money you think you need to get you know two dollars a share out of the market and that's not realistic on a daily basis. It's going to be really hard to do that so you've set the bar. Impossibly high you've almost set yourself up for failure. Whereas.

Traders who can use more leverage they can trade with a little bit larger amount of money they're able to do better because they can get these small little you know 15 20 moves and they can take enough shares that that actually creates a meaningful profit you know 2 000. Shares boom. You're in you're out and you're locking it up so you know this is kind of the approach that i think about get green get out lock. It up don't overstay your welcome and then you know come back for the next trade.

So there for a second um. So tomorrow one o'clock. I'll teach the concise version of the i'll go scalping strategy class for you i'll give you some history of the market of sort of walking you through how uh. The market transformed from being on wall street to being in secaucus.

New jersey. Um carter at new jersey. And you know the the market is um. It's not on wall street.

That's not where the trading happens. The trading happens in the data centers that's where that's you know this is an electronic market. So what's interesting is that the the progression from the floor to an electronic market. Obviously supported by huge advances in technology.

The internet and then on top of that it's created these latencies in the market and these inefficiencies in the market. And some of these have led to opportunities so like for instance. When you have a stock that has a um you know has news of a buyout. The news will hit you know pr hits stock has received buyout offer for fourteen dollars a share and let's say it's trading at seven dollars a share what immediately happens is an algo jumps on that they read the headline they jump on it they execute buy orders they pull their sell orders and the stock starts squeezing up immediately right.

It's instantaneous and that's because there's an algo that is trading that stock it starts surging up and that right there is an inefficiency. Because truly this the company is now valued at 15 or 14 right it should just go immediately to that level like it. But it trades up to that level that gives you the opportunity to buy it essentially at a at a lower price than its true value. Because the market is not perfectly efficient.

It doesn't just immediately jump to that price it has to trade up to that price and so when we have breaking news headline of a company that you know puts out you know has 500 times year over year earnings. Something like that it's not like the company just immediately starts trading. It you know five times higher it trades up to that level. And so we can ride these waves of momentum up you know obviously as stocks have breaking news and that for me has been kind of the bread and butter right now looking for stocks with breaking news jumping in as quickly as i can riding that momentum buying micro pullbacks looking for the next leg up and actively trading them until they slow down.

And sometimes you have ones like pgy. Today that end up going up over 100 they continue all day long other days. We have ones that you know they pop up. We have some good action pre market.

But by 9 30. They're already pulling back. So you know we have sort of the whole spectrum. There and my opinion in a bear.

Market is get in get your base hit get green and then come back tomorrow do it again. And that's what i'm going to do tomorrow. So you know so far this week had a decent day on monday good day today and you know i'm going to sit down tomorrow. And do the same thing.

I did monday and tuesday. I'm going to look tomorrow morning early for breaking news look for opportunities. Where i think we might get an algo spike try to jump in as quickly as i can ride the momentum. Because the algo remember is going to carry that stock up to the next level based on the headline based on the quality of the news.

So now i just have to ride that momentum take the profit as it goes up and then look for the next entry. If it's really strong so anyways um. I just wanted to share that with you and get you guys excited for the workshop. Tomorrow.

So that'll be um. I'll go scalping strategy study group at 1pm eastern. So there's a link right down below. That you guys can click to register.

I hope i'll see you there and i'll see you in any case for the morning show first thing tomorrow morning so uh. I hope you guys have a great rest of the day reminder as always my results are not typical trading is risky so make sure you take it slow and i'll see you first thing tomorrow morning all right see you in the morning bye everyone.